Why you should follow the money💰Kehinde LAWAL
Making money is much easier when you allow yourself to be creative. I know a lot of people, including myself, who made less money even after taking so much courses. Why is that so? This is because back then, you look at things from a distinct perspective and you try to make the little but important changes.
Nowadays we take courses and try to fixate our attention on what we learn. We totally neglect the result showing us that the content is either outdated or the market needs something else. And eventually, our business fail.
Like a total stranger 😂, you got to follow the money. And these are reasons why, according to Joe Procopio, a multi-exit and multi-failure entrepreneur.
Why you should follow the Money:
Reason #1: What I’d do, and actually, I’ve done this a couple times, is first throw out advertising. It’s not going to work an we’ll spend all our time not selling ads. Then, instead of building a critical mass of audience, I start by finding its first two members and converting them immediately.
If two people will pay for whatever the thing is we want to be generating our revenue from, then we’re actually on our way to building a customer base of a million people or whatever number we have in our heads. Then we can learn and replicate.
Reason #2: If we’re going to build a multi-functional product, we need a balanced approach — somewhere between being all things to all customers and being the best product in our own niche corner of the market.
Especially in the beginning, we won’t know where our niche corner is until our customers tell us, with their dollars. If we aim at the wrong group, or turn them off with a limited functional experience, we’ll never get that signal.
Reason #3: At my current startup, Spiffy, we see this all the time. There are tons of mobile car wash companies out there, and scale usually knocks them over, because while they have the tech to take on business at scale, they lack the ability to scale the business because of all the problems that come with scale.
They actually wind up taking on a lot of business they either can’t handle or can’t make any profit from. If you’re familiar with HBO’s Silicon Valley, this is the lesson of Sliceline.
So we actually build our tech last. Whenever we do something new — whether that’s turning on a new feature, opening a new market, creating a new line of business — we roll it out mostly manually and see where the money comes in and where the problems pop up. Then we build the tech to capitalize on the former and minimize the latter.